US stock futures experienced a decline as investors reduced positions due to year-end uncertainties. Dow Jones futures fell 0.8%, S&P 500 futures dropped 1%, and Nasdaq futures decreased 1%. European markets also saw a slight dip, with Germany's DAX down 0.41%, the UK's FTSE 100 down 0.26%, and France's CAC 40 down 0.15%. The Stoxx 600 index fell 0.4% amid low trading volumes ahead of the holiday season.
Despite a strong performance this year, with the S&P 500 up 25% and the Nasdaq up 31%, concerns about high valuations compared to US Treasury yields persist. Analysts suggest maintaining a cautious stance due to potential volatility and low trading volumes.
In Asia, markets ended a five-day rally, with Japan's Nikkei down 0.9% but up 20% for the year. Korea's market, impacted by political uncertainties, rose 0.3% on the day but is down 9% for the year.
Bond yields have risen, driven by reassessments of monetary policy expectations, potentially affecting future corporate earnings growth. The dollar index remained stable, benefiting from policy expectations under President-elect Trump.
